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CEO Gene Jones says social housing employees and contractors may face discipline after an audit hints at kickbacks, double billing and shoddy work.

President and CEO of Toronto Community Housing, Eugene E. Jones Jr. is warning employees will be disciplined and possibly fired after a third-party review revealed "possible improprieties" by vendors and staff. (PAWEL DWULIT / TORONTO STAR)

An anonymous tipster and “good staff who want to stop this madness” alerted Toronto Community Housing Corp. to apparent “improprieties” involving repair work that could include kickbacks and double billing.

“Kickbacks, people not agreeing to work or approving work that they shouldn't be approving”

Gene Jones

CEO of Toronto Community Housing Corporation

Gene Jones, chief executive of the city-funded social housing provider, revealed Wednesday that an audit by an outside firm is nearing completion and has already pointed to apparent wrongdoing.

“There’s a possibility of kickbacks and so forth; it has not been yet investigated but we have a pattern where we think there may be some kickbacks,” Jones told reporters at TCHC headquarters.

“There may be double-billing of work; there may be shoddy work.”

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Results of the probe by an outside auditor into actions of employees and TCHC-contracted vendors will be released this spring, he said.

“What we have so far is indications that we should look at something; there are no facts at this point in time,” TCHC chair Bud Purves said, explaining why he would not release the audit’s preliminary results.

But Jones, hired eight months ago to clean up the agency after past audits revealed problems including lavish internal spending, said he will not hesitate, if necessary, to punish or fire staff, go to civil court to recover funds or call in the police.

“However high it goes and however low it goes, whoever is perpetrating any criminal activity or doing wrongdoing or anything like that, I’m going after.”

A source with knowledge of the preliminary audit findings, who was not authorized to speak about them, said they point to contractors doing “mechanical” work. That could include plumbing as well as repairs to boilers and heating and ventilation systems.

Mark Ferguson, president of CUPE Local 416, was unaware of the probe and has not received complaints about any of his roughly 450 members at TCHC. “I know that our members have raised questions in regard to mechanical work by contractors that was either not done or billed improperly,” he said, adding he will encourage all his members to co-operate with the probe.

The news comes on the heels of critical reports by the city auditor, and as the cash-strapped agency grapples with a repair backlog of more than $750 million.

Jones said that, since taking the job, he has been disturbed by comments from tenants about the agency wasting repair money.

Those complaints include fixes being done repeatedly because of “shoddy work”; small repairs not being done, leading to more expensive fixes; and employees “being careless or cutting corners,” leading to higher costs.

Several contractors work on repairs, said downtown community housing resident Janet Andrews. “You’ve got different painters, different electricians,” she said. “They’ve got the pest control . . . the rug guys that come in.”

Fixes and replacements in her unit were done quickly and properly, Andrews said, but there have been extensive delays with bedbug removal and laundry repairs.

Councillor Maria Augimeri, a TCHC director and former tenant, said there have been whispers about shoddy repair work and bills for “decades.”

“I think it’s important we ensure there’s no contractors taking advantage of the most vulnerable in our city,” she said.

Jones invited anyone with information to contact him directly at 416-981-4050 or eugene.jonesjr@torontohousing.ca , or anonymously through the “Do What’s Right” telephone hotline (1-877-993-6744) and website.

He noted that city employees who provide information will be protected by “whistleblower protection” policies.

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